holding a Feb SPX Iron Condor.. What to do

Discussion in 'Options' started by devilfishlane, Feb 14, 2011.

  1. I'm holding a Feb IC



    Obviously if my 1235 gets stuck and holds by Friday exp, I'll lose $$. Would it be a good idea to roll into the next month, or am I too late? Any thoughts besides, What the hell are you doing?

  2. Pinozi


    Unless those strikes are wrong then it looks like you're facing a max loss on the call side.

    Rolling in this case is just basically opening a new trade - make sure this new trade will be a position that you actually want, not a position you opened because you were chasing or minimising losses

    Just use this trade as a learning experience and try not to make the same mistakes again
  3. I trade index options credit spreads for a living. However I'm having trouble understanding your plan. What date did you enter the spreads/IC? What kind of credits did you receive when you put on the credit spreads/IC. Was your trading unit a credit spread or the Iron Condor? Does your IC strategy allow any legs to go ITM?

    I may be able to help you with future trades with credit spreads, but, if I understand your notation, one of your spreads is way ITM and is unlikely to expire worthless.
  4. MTE


    With SPX at 1332.32 the 1235/1245 call spread is deep ITM and it is already trading at 10.

    There is nothing left to roll here! All you can do now is hope that the market crashes by Friday.
  5. I don't know if SPX has weeklies, but if it does, try using those in the future to help out with the risk if one of the insides starts to look like it's in serious danger of getting "touched". But you should also have some sort of plan for getting out past a certain level. The weeklies would just give you some time to figure out the logic, if you need that time that is. But with the index way over the call inside point, I have a hard time figuring out why you're still in the call side of this thing.
    But this is obviously a real old position, so like the other guy said, prayer? It is earnings season after all; you could get lucky.
  6. daveyc


    i have a feeling that the position is at 1335/1345 and not 1235/1245, so hopefully it is just a typo.

    and i like the previous post about using the weeklies as defense for a iron condor that is beginning to get outside your comfort zone.
  7. tomk96


    i hope you at least collected $10. Did you mean the 13 handle?